DCIT, NEW DELHI vs. M/S. HELIOS PHOTO VOLTAIC LTD., NEW DELHI

PDF · subscribers
ITA 3726/DEL/2017Status: DisposedITAT Delhi17 February 2021AY 2010-112 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the CIT(A) was correct in directing the exclusion of interest income that was not attributable to earning exempt income. The interest on investments in overseas companies that did not yield exempt income was rightly excluded.

What were the facts?

The Revenue appealed against the CIT(A)'s order directing the exclusion of a significant interest amount from disallowance under Section 14A. The assessee had earned a small amount of dividend income, but the AO had disallowed a much larger sum.

What were the issues?

Whether interest not directly attributable to exempt income should be included in the disallowance computation under Section 14A read with Rule 8D.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI

Before: Sh. Sudhanshu SrivastavaDr. B. R. R. Kumar

Hearing: 28.01.2021Pronounced: 17.02.2021

Per Dr. B. R. R. Kumar, Accountant Member:

1.

The present appeal has been filed by the revenue against the order of the ld. CIT(A)-38, Delhi dated 23.02.2017.

2.

Following grounds have been raised by the revenue:

1. Whether on the facts and circumstances of the case, the ld. CIT(A) erred in directing the AO to exclude the interest amount of Rs.89,20,96,179/- from the interest not directly attributable to any particular income or receipt while computing disallowance u/s 14A r.w.r. 8D.”

3.

The dividend earned by the assessee was Rs.1,91,577/-. The amount disallowed by the AO was Rs.3,65,20,080/-.

2 Helios Photo Voltaic Ltd. 4. Out of which, the ld. CIT (A) has directed to exclude the interest amount of Rs.89.20 Cr. which was not attributed to earning of exempt income.

5.

We find that the ground taken up by the revenue has no legal validity as the ld. CIT (A) has rightly directed to exclude the interest income on the amounts involved in investment and in the overseas companies which did not give rise to any exempt income and which was not utilized for earning the exempt income.

6.

In the result, the appeal of the revenue is dismissed. Order Pronounced in the Open Court on 17/02/2021.

More judgments on Section 14A

All 15,875 judgments and leading authorities on Section 14A →

Recent GST High Court judgments

Search GST case law →